Gold Falls About 1% As Dollar Ticks Higher Amid Investors Reassess U.S. Jobs Report

Gold Falls About 1% As Dollar Ticks Higher Amid Investors Reassess U.S. Jobs Report

Prices of gold futures declined significantly around 1% on Monday as a firmer dollar caused some investors to cash in gains after climbing the metal back to $ 1,300 an ounce in the previous session, in addition to the investors watched jobs data on Friday from United States as less disappointing than previously thought.

Gold for June delivery on the Comex Exchange fell by as much as 1.1% to a daily low of 1,280.50 a troy ounce, before recovering slightly to $1,282.15 ounce.

Spot gold was down 1 per cent at $1,275.81 an ounce.

The DOL informed that the US economy added 160,000 jobs last month, the lowest increase since September and much lower than the 202,000 jobs expected by economists. The rate of unemployment is maintained at 5%.

The brightest sport report showed that average hourly earnings rose eight cents or 0.3%, thereby increasing year to the next to 2.5% from 2.3% in March.

Also they weighed on the precious metal words of a senior official of the Federal Reserve on Friday, which indicated that interest rates in the US could still rise sooner than expected. New York, William Dudley, president of the Fed said it was be reasonable to expect two rate hikes this year despite weaker than expected in April hiring data.

The US dollar index, that measures the strength of the greenback versus a trade-weighted basket of six leading currencies, rose to 94.04 in early trading on Monday, the highest since this past April 28 stood at 93.92, up 0.1% for the day.

The hedge funds and money managers boosted their net long positions in Comex gold contracts in the week to May 3, US data Commodity Futures Trading Commission showed on Friday.

Rising rates tend to weigh gold, because they increase the opportunity cost of maintaining inflexible ingots, while boosting the dollar, which has a price. Gold has risen 20 percent this year, because expectations of a Fed hike short-term vanished.

In the national capital, gold of 99.9 and 99.5% purity fell by Rs 250 each to Rs 30,100 and Rs 29,950 per 10 grams, respectively as the auspicious Akshaya Tritiya festival failed to enthuse the spirit of buyers.

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